Record the transactions in a horizontal statements model like the following

one In the Cash

Flow column.

indicate whether the item IS an operating activity (OA). investing activity (IA). financial activity

(PA) Use NA to indicate that an element was not attected ov the event

Liah

Rev.

Exp.

Net InC

Cash Flow

Cash

Equitv

Com. Stk.

+ PIC in Excess

Proprietorships, Partnerships, and Corporations

Determine the amount Home Medical would report for common stock on the December 31.

201. balance sheet.

Determine the amount Home Medical would report for paid-in capital in excess of par.

What is the total amount of capital contributed by the owners?

What amount of total assets would Home Medical report on the December 31.2011. balance

sheet?

f. Prepare journal entries to record the March I and May 2 transactions. Write a memo explaining why one company's P/E ratio may be higher than another company's

P/E ratio.

On October 1, 2011, Smart Corporation declared a $60,000 cash dividend to be paid on

December 30 to shareholders of record on November 20.

Required

Record the events occurring on October 1, November 20, and December 30 in a horizontal

statements model like the following one.

In the Cash flow column. Indicate whether the item

is an operating activity (OA), investing activity (IA), or financing activity (FA).

Date

Assets = liab. + Com. Stock = Ret. carn.

Rev. - Exp. = Net Inc.

Cash Flow

b. Prepare journal entries for all events associated with the dividend

Proprietorships, Partnerships, and Corporations

ercise 11-11A Accounting for cumulative preferred dividends

en Polledo Corporation was organized in January 201 1, it immediately issued 5.000 shares of

par, 5 percent, cumulative preferred stock and 10,000 shares of S10 par common stock. The

pany's earnings history is as follows: 201 1, net loss of $15,000; 2012, net income of S60,000;

3. net income of S95.000. The corporation did not pav a dividend in 2011.

Effect of cash dividends on financial statements

On October 1, 2011, Smart Corporation declared a $60,000 cash dividend to be paid on

December 30 to shareholders of record on November 20.

Required

Record the events occurring on October 1, November 20, and December 30 in a horizontal

statements model like the following one.

In the Cash flow column. Indicate whether the item

is an operating activity (OA), investing activity (IA), or financing activity (FA).

Date

Assets = liab. + Com. Stock = Ret. carn.

Rev. - Exp. = Net Inc.

Cash Flow

b. Prepare journal entries for all events associated with the dividend